A group of lawmakers have introduced a measure they say aims to protect the domestic supply chain from foreign adversaries, including China and Russia.
Representatives Rosa DeLauro (D-CT), Bill Pascrell, Jr. (D-NJ), Brian Fitzpatrick (R-PA) and Victoria Spartz (R-IN) introduced the National Critical Capabilities Defense Act (NCCDA). This bill would initiate a process to review outward investment, critical capacity and offshoring of supply chains to ensure early detection of supply chain vulnerabilities.
“The COVID-19 pandemic and semiconductor shortages have revealed that critical US supply chains are not up to the task of robustly meeting America’s needs,” DeLauro said. “We must learn from our mistakes and cannot allow outward investment from the United States to take critical supply chains overseas and hand them over to our adversaries such as China or Russia.”
DeLauro said companies should at a minimum be required to report on the proposed supply chain relocation to allow the United States to better protect critical manufacturing capabilities domestically and to protect American workers.
“The frayed US supply chain and our continued bleeding of offshore industrial capacity pose a dangerous threat to US national security,” Pascrell said. “This decisive, bipartite, bicameral legislation will be an important step in providing the transparency and tools necessary to prevent supply chains and critical industries from being outsourced to our adversaries. It’s time to improve supply chain visibility so that our businesses and average workers’ investments are not tricked into fostering trade that undermines U.S. competitiveness. “